Today is the day when Groupon shares will start trading under the ticker GRPN. Demand for shares of new promising companies has been huge and almost all better-known IPOs have seen a significant price pop in the opening of trading. Yet the price pop has attracted lots of sellers and short sellers especially in the case of companies like GRPN or LinkedIn where expectations for profit are usually ahead of the curve causing volatile share price action.
Still I am hoping to get some trading action with Groupon shares. I am expecting the price of GRPN shares to pop in the open since very few GRPN shares are floated (only around 5% of total shares) and institutions are looking for exposure to hot fast growing IT firms like Facebook, Groupon or Zynga. My strategy is to buy into the opening strength and sell when buying pressure slows.
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